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Household energy debt in Great Britain surges to £4.43 billion

ALN

Household energy debt in Great Britain has surged to £4.43 billion  three quarters of a billion pounds more than this time last year, latest Ofgem figures show.

According to Ofgem data, household debt and arrears have risen from £1.45 billion at the end of 2020 to £3.69 billion in the second quarter of last year and to £4.43 billion a year later.

The regulator also reported that 1,133,683 electricity customers and 926,545 gas customers are in debt without any repayment arrangement in place.

The collective debt is leaving households facing up to an extra £145 a year on their bills to cover the shortfall.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said: ‘Energy debt is now driving people into dangerous financial positions as we approach the fifth winter of the energy bills crisis.

‘Previous research has found that almost one in five households in energy debt have turned to illegal money lenders, with households waking each morning fearful of what using electricity or gas might cost them.

‘We must urgently write off arrears and reform the system so fewer households are powerless to pay off their debts.’

Independent Age Policy Manager David Southgate said: ‘Older people on low incomes are increasingly bed-bound by the cold  forced to turn in early in hats, gloves, scarves and extra blankets during the winter to stay warm.

‘Many have fallen into debt in a bid to keep the heating on. With yet another difficult winter just around the corner, they need immediate support.

‘We are calling on the UK Government to tackle this mountain of debt with a properly funded and targeted debt relief scheme, alongside wider affordability reform, including a national energy social tariff, to ensure everyone can afford to heat and power their homes.’

By Josie Clarke, PA Consumer Affairs Correspondent

Press Association: Finance

source: PA

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